Avid Acquired by A Private Equity Firm for $1.4bn

Avid , the brand behind Pro Tools, has announced that it has entered into a definitive agreement to be acquired by an affiliate of private equity firm STG in an all-cash transaction. The deal values Avid at $1.4 billion, inclusive of Avid’s net debt and is expected to be closed before the end of the year.

Once the deal is completed, Avid will become a privately held company; Under the terms of the agreement, Avid stockholders will receive $27.05 in cash for each share of Avid common stock. The cash purchase price represents a premium of 32.1% over the Company’s unaffected closing share price on May 23, 2023, the last full trading day prior to media speculation regarding a potential sale of the Company.

One of the biggest brands in pro audio, Avid is the manufacturer of a variety of multimedia tools including the DAW Pro Tools, video editing software Media Composer and score editor Sibelius. Pro Tools is an industry-standard DAW used in recording studios across the globe.

Avid’s acquisition is another example of a leading music technology brand bought up by private equity; in 2021, investment firm Francisco Partners acquired Native Instruments.  Earlier this year, Moog was purchased by inMusic, the owner of Akai, Alesis and M-Audio. The corporate consolidation of music tech was expertly covered by content creator Benn Jordan in a recent video; if you’re interested in where this could lead, we recommend watching.

“This transaction is the result of a comprehensive review of strategic alternatives for Avid,” said John P. Wallace, Chairman of the Avid Board of Directors. “Upon closing, this transaction will deliver immediate, significant and certain value to our stockholders. After carefully evaluating a variety of options, the Board determined that this transaction is in the best interests of Avid and its stockholders.”

In a statement, STG’s Managing Partner William Chisholm said that “STG has admired Avid’s heritage as a category creator and pioneer in the media and entertainment software market for many years […] We look forward to leveraging our experience as software investors to accelerate Avid’s growth trajectory with a deep focus on technological innovation, and by delivering enhanced value for Avid’s customers.”

Transaction Details

The transaction was unanimously approved by Avid’s Board of Directors and is expected to close during the fourth quarter of 2023, subject to Avid stockholder approval, regulatory approvals and other customary closing conditions. The transaction will be financed through a combination of equity and debt financing and is not subject to a financing condition. Upon completion of the transaction, Avid will become a privately-held company, and its common stock will no longer be traded on Nasdaq.

Find out more on Avid website.

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